Outsource Accounting Services in Malaysia vs. In-House: Which One is Right for You?

Running a business in Malaysia comes with endless financial responsibilities—from bookkeeping and tax filings to payroll and compliance with SSM (Suruhanjaya Syarikat Malaysia) regulations.

Many business owners ask the big question: Should I hire an in-house accountant, or is outsourcing a smarter choice?

At first glance, keeping an in-house accounting team is the safest option, where you have full control over your finances, and your accountant is always within reach.

On the other hand, outsourcing accounting services in Malaysia gives you access to certified professionals without the hefty overhead.

Let’s dive deeper into the common challenges businesses face with in-house accounting, the benefits of outsourcing, and how to make the right decision for your company.

Key Takeaways

• Companies outsource accounting to save time, cpst saving, and ensure SSM and LHDN regulations compliance.
• Outsourcing provides expert financial management, minimises errors, and offers scalable solutions at a lower cost than hiring in-house.
• Look for licensed professionals with industry experience, transparent pricing, strong customer support, and secure data protection.
• Common misconceptions about outsourcing include losing control, high costs, and security risks, but it actually enhances efficiency and compliance.

Why Businesses Outsource Accounting Services in Malaysia?

Many businesses in Malaysia start by managing their finances in-house, either by hiring an accountant or handling bookkeeping themselves.

As the company grows, financial management becomes more complex, leading to challenges that push businesses to seek outsourced accounting services.

1. Struggling to Keep Up with SSM Compliance Deadlines

Businesses must adhere to strict SSM and LHDN  filing deadlines, including annual financial statements, tax submissions, and payroll reports.

Missing these deadlines can result in penalties, late fees, or legal action.

Example: A small business owner focuses on daily operations and forgets to submit the annual financial report to SSM, which can lead to fines and compliance issues.

2. Lack of Knowledge About Corporate Governance & Regulations

Many entrepreneurs, especially startups, lack expertise in financial regulations, taxation policies, and corporate compliance.

Without proper knowledge, they may make accounting mistakes that result in tax audits or legal complications.

Example: A new startup founder unknowingly underreports taxable income, triggering an LHDN audit and potential financial penalties.

3. Too Much Administrative Work, Not Enough Time for Business Growth

Handling bookkeeping, payroll, and tax filing can be time-consuming, especially for small business owners who also manage marketing, sales, and operations.

Juggling multiple roles often leads to overlooked accounting tasks.

Example: A business owner spends monthly hours preparing invoices, recording transactions, and processing payroll instead of focusing on business expansion.

4. Hiring an In-House Accountant is Too Expensive

Hiring a full-time, in-house accountant can be costly, especially for SMEs.

Beyond salary, businesses must cover EPF, SOCSO, training, software, and office space, making it a major expense.

Example: A growing SME needs an accountant but cannot afford a monthly salary of RM5,000+, leading to financial strain.

5. Difficulty Managing Shareholder or Director Changes

Corporate changes, such as adding shareholders, transferring shares, or appointing new directors, involve legal paperwork and regulatory procedures.

Improper handling can delay the process and lead to non-compliance.

Example: A business wants to bring in a new investor but struggles to file the required board resolutions and share transfer documents, delaying expansion plans.

6. Concerns About Non-Compliance & Legal Risks

Incorrect tax filings, poor bookkeeping, or lack of financial transparency can result in regulatory fines and legal action.

Non-compliance with LHDN, SSM, or Bank Negara Malaysiaregulations puts businesses at serious risk.

Example: A company submits incorrect tax filings due to poor bookkeeping and later receives an LHDN audit notice, leading to unexpected back taxes and penalties.

7. Rapid Business Growth Leading to Complex Financial Management

Cash flow management, payroll, and taxation become more complex when a business scales up.

Companies may struggle with budgeting, forecasting, and maintaining financial health without structured financial oversight.

Example: A small e-commerce business suddenly experiences a surge in orders but fails to properly track revenue, expenses, and tax obligations, creating financial instability.

When is the right time to hire an accountant? Explore the benefits of local vs big accounting firms in Malaysia and choose wisely.

6 Benefits of Using Outsource Accounting Service Malaysia

Many businesses in Malaysia begin with in-house accounting, but as financial management becomes more demanding, outsourcing emerges as a more efficient, scalable, and cost-effective solution.

Here are the benefits of using outsourced accounting services for your business in Malaysia:

1. Ensures Compliance with Malaysian Laws and SSM Regulations

Accounting and tax regulations in Malaysia are constantly evolving, and it can be challenging to stay compliant with SSM, LHDN, and Bank Negara Malaysia.

To avoid penalties, businesses must submit accurate bank statements, tax reports, and payroll records on time.

Example: A startup struggles to keep up with corporate tax deadlines and unintentionally misses an LHDN filing, resulting in fines.

2. Cost-Effective Compared to Hiring In-House

Hiring an in-house accountant involves high salaries, benefits, training, and software costs, making it an expensive commitment.

Outsourcing allows businesses to only pay for the services they need, saving costs while still accessing professional expertise.

Example: A growing SME can outsource for just RM500–RM1,500/month, covering bookkeeping, tax filing, and payroll processing.

3. Saves Time and Reduces Administrative Burden

Business owners manage multiple roles—handling daily operations, sales, and marketing.

Managing accounting manually takes up valuable time that could be spent on scaling the business.

Example: A restaurant owner spends hours each week recording transactions and preparing tax invoices instead of focusing on improving customer service and expanding the business.

4. Access to Experienced and Licensed Professionals

Outsourcing gives businesses access to qualified accountants and tax professionals who stay updated with financial regulations, ensuring accurate financial reporting and tax filing.

This reduces errors, audits, and financial mismanagement.

Example: A tech startup with limited financial knowledge outsources accounting to a licensed professional, ensuring proper tax deductions and accurate financial statements.

5. Efficient Handling of Annual Filings, Resolutions, and Board Minutes

Companies must file annual returns, financial statements, and board resolutions to comply with SSM.

Outsourced accountants ensure that all paperwork is correctly submitted, avoiding legal complications.

Example: A business using outsourcing accounting services ensures all filings are handled professionally and on time.

6. Reduces Risk of Non-Compliance and Penalties

Mistakes in tax filing, payroll processing, or financial reports can lead to penalties, audits, or even business suspension.

Outsourcing helps mitigate financial risks by ensuring that all records and filings are accurate and compliant.

Example: For a logistics company, an outsourced accountant ensures that the SST report is correct, preventing such issues for an LHDN audit.

Wondering how outsourced accounting firms work? Discover their services and how they can benefit your business.

How to Choose the Right Outsourced Accounting Services in Malaysia

Outsourcing your accounting services can be a game-changer for your business, but choosing the right service provider is crucial to ensure compliance, accuracy, and efficiency.

With so many firms offering accounting services in Malaysia, here are five key factors to consider before making a decision:

1. Verify Licensing and Accreditation

A reliable accounting firm should be registered with regulatory bodies like:

• Malaysian Institute of Accountants (MIA) – Ensures professional standards and ethical practices.
• Chartered Tax Institute of Malaysia (CTIM) – Chartered accountants for tax-related expertise.
• SSM (Suruhanjaya Syarikat Malaysia) – Ensures legitimacy in handling corporate compliance matters.

Tip: Always request the firm’s MIA or CTIM registration number and verify it on the respective websites to ensure legitimacy.

2. Look for Industry Experience and Reputation

Choose an accounting firm with experience in your industry to ensure they understand sector-specific regulations, tax incentives, and reporting requirements.

Check client testimonials, case studies, and online reviews to assess reliability and service quality.

Ask about their experience handling SSM, LHDN, and SST filings for businesses of your size.

Tip: Shortlist providers who have existing clients in your industry as they will be more familiar with sector-specific financial challenges.

3. Compare Pricing and Service Packages

Outsourcing should be cost-effective while providing value. Different providers offer various pricing models based on:

• Monthly or yearly packages – Ideal for businesses requiring continuous bookkeeping and tax services.
• Pay-per-service – Suitable for businesses that need occasional tax filing or financial reporting.
• Scalable pricing – Flexible plans that grow with your business needs.

Tip: Always request a cost breakdown and check for hidden fees to avoid unexpected charges.

4. Ensure Customer Support and Responsiveness

Timely and efficient support is essential in accounting, as late responses can lead to missed tax deadlines, penalties, and cash flow issues.

• Choose a firm with dedicated support channels (email, phone, WhatsApp) and fast response times.
• Check if they provide real-time financial insights and regular reporting to keep you updated.

Tip: Test their response time before committing by sending an inquiry email or message and observing how quickly they reply.

5. Assess Data Security and Confidentiality Policies

Since accounting involves sensitive financial information, ensure the provider has strong security measures to protect your data.

• Ask about cloud-based accounting solutions with encryption for secure access.
• Ensure compliance with PDPA (Personal Data Protection Act) (No_Follow) to safeguard financial records.

Tip: Choose an accounting firm that uses encrypted cloud accounting software like Xero or QuickBooks to protect sensitive financial data.

Confused about accounting vs bookkeeping? Learn the key differences and how to hire the right expert for your business.

8 Myths About Outsourcing Accounting Services in Malaysia

Despite the increasing adoption of outsourced accounting services in Malaysia, many business owners hesitate due to misconceptions.

Let’s break down these myths and see what’s true.

Myth 1: Outsourcing Means Losing Control Over My Company’s Finances

Many business owners fear outsourcing means handing over complete control of their financial records to a third party.

Truth

Think of it like having a personal finance expert on your team—but without the overhead costs.

You still have full access to your financial data, and instead of handling everything alone, you get accurate reports and expert financial advice to make smarter financial decisions.

Myth 2: Only Large Corporations Need Outsourced Accounting Services

Many SMEs and startups believe that outsourced accounting only benefits big companies with complex financial structures.

Truth

Whether you’re a startup, SME, or growing business, outsourcing can help reduce costs, ensure compliance, and improve efficiency.

You don’t need to be a multinational company to benefit from professional accounting services!

Myth 3: Outsourced Accounting Is Too Expensive

Some businesses assume hiring an external firm is more costly than managing finances in-house.

Truth

Hiring a full-time accountant can cost RM5,000+ per month, while outsourcing allows you to pay only for your needed services.

Instead of spending on salaries, training, and accounting software, you get expert financial management at a fraction of the cost.

Myth 4: My Business Is Too Small to Need Professional Accounting Help

Many small business owners believe they can handle their bookkeeping without professional assistance.

Truth

Even small businesses must comply with SSM and LHDN regulations. A single mistake in tax filing could trigger an audit or hefty penalties.

Outsourcing ensures your financial records are error-free, so you don’t get caught off guard by compliance issues.

Myth 5: An Outsourced Accountant Won’t Understand My Business Needs

Some business owners worry that an external accountant will not understand their industry, business model, or financial structure.

Truth

Many accounting firms specialise in various industries, so they understand your specific tax obligations, financial risks, and cash flow challenges.

A great outsourced accountant will customise their approach to fit your business, not vice versa.

Myth 6: I Can Use Accounting Software Instead of Outsourcing

Many businesses believe that using QuickBooks, Xero, or other accounting software eliminates the need for professional accounting services.

Truth

The cloud-based software can help with basic bookkeeping but does not interpret tax laws, suggest financial strategies, or prevent compliance mistakes.

A professional accountant uses these tools more effectively, ensuring your books are accurate and tax-efficient.

Myth 7: Outsourcing Puts My Financial Data at Risk

Some businesses fear outsourcing exposes sensitive financial data to security threats or breaches.

Truth

Reputable accounting firms use encrypted cloud-based systems, firewalls, and compliance with PDPA (Personal Data Protection Act) to keep your data safe and confidential.

Your financial records are more secure with professionals than on an unsecured office computer.

Myth 8: Changing to an Outsourced Accountant Is Difficult

Some businesses hesitate to switch from in-house accounting to outsourcing, thinking the transition process is complicated and time-consuming.

Truth

A professional accounting firm handles the entire transition smoothly, from data migration to setting up financial reports.

You don’t have to worry about the process—your new accountant will ensure everything is in place without disrupting your business.

Grof’s Accounting Services: Reliable, Cost-Effective, and Expert-Driven

At Grof, we understand that managing your business finances can be overwhelming, especially when dealing with SSM compliance, tax filing, payroll, and financial reporting.

We offer professional, outsource accounting services in Malaysia—helping businesses of all sizes streamline their finances while ensuring full compliance with Malaysian regulations.

Here’s how GROF’s accounting services can support your business:

1. SSM-Registered & Licensed Professionals

GROF’s team consists of MIA (Malaysian Institute of Accountants) and CTIM (Chartered Tax Institute of Malaysia) certified professionals, ensuring your accounts are handled with precision, accuracy, and compliance.

Our financial specilaists help businesses comply with SSM regulations by ensuring timely submission of financial statements, annual returns, and corporate tax filings.

2. Complete Bookkeeping & Financial Reporting

Keeping accurate financial records is crucial for decision-making and tax compliance. We offer:

• Comprehensive bookkeeping – Managing daily transactions, invoicing, and financial statements.
• Financial reporting & analysis – Providing profit & loss statements, balance sheets, and cash flow statement to track your business health.

Whether you run a startup, SME, or established corporation, we tailor our services to fit your business needs.

3. Tax Filing & Compliance with LHDN Regulations

Avoid penalties and ensure smooth tax filing with our LHDN-compliant tax services, including:

• Corporate tax filing – Submission of Form C, E, and tax estimates (CP204).
• SST (Sales & Service Tax) filing – Assisting businesses registered for SST with monthly or bi-monthly filings.
• Tax advisory & optimisation – Helping businesses reduce tax liabilities while staying legally compliant.

With GROF, you never have to worry about tax deadlines again!

4. Payroll Processing & Statutory Contributions

Managing payroll can be time-consuming, especially when ensuring compliance with EPF, SOCSO, and EIS regulations. GROF simplifies this with:

• Payroll calculation & payslip generation – Ensuring accurate salary processing.
• EPF, SOCSO & EIS submission – Filing statutory contributions on your employees’ behalf.
• Year-end payroll reports – Assisting with EA forms and tax filings for employees.

5. Business Incorporation & Advisory Services

Starting a new business? GROF offers company incorporation services alongside accounting support, ensuring you start on the right track.

• Sdn Bhd registration assistance – Helping businesses register with SSM & LHDN.
• Company secretary services – Managing statutory filings and compliance reports.
• Business advisory & financial planning – Providing insights to improve financial performance.

6. Affordable & Transparent Pricing

We believe in transparent, flexible pricing so businesses can access high-quality accounting services without breaking the bank.

• Fixed monthly plans – Ideal for SMEs that need ongoing bookkeeping and tax services.
• Customisable packages – Pay only for the services you need.
• Scalable solutions – As your business grows, our services adapt to meet your needs.

No hidden fees, no surprises—just professional accounting support at a competitive rate.

Curious about our accounting service rates? Check out Grof’s flexible pricing plans designed for businesses of all sizes.

7. Dedicated Customer Support

At GROF, we prioritise accuracy, security, and customer satisfaction.

• Responsive support – Quick replies via email, phone, or WhatsApp for any accounting queries.
• Real-time financial insights – Helping business owners make informed financial decisions anytime, anywhere.

Conclusion

Managing business finances can be time-consuming, complex, and costly, especially when dealing with SSM compliance, tax filings, payroll, and financial reporting.

While some businesses attempt to handle accounting in-house, many face challenges such as rising costs, compliance risks, and administrative burdens—leading them to outsource accounting services as a cost-effective, scalable, and efficient solution.

By outsourcing, businesses can:

• Ensure full compliance with Malaysian laws and avoid penalties from SSM, LHDN, and Bank Negara Malaysia.
• Reduce costs compared to hiring a full-time accountant while receiving expert financial support.
• Save time and focus on business growth instead of struggling with financial paperwork.
• Gain access to experienced and licensed professionals who specialise in different industries.
• Use secure, cloud-based accounting solutions to keep financial data safe and accessible.

Despite common misconceptions, outsourced accounting enhances accuracy, efficiency, and compliance while keeping business owners in full control of their finances.

Choosing the right accounting firm is essential, and factors like licensing, industry experience, pricing, customer support, and security measures should be carefully considered.

Grof provides professional, reliable, and scalable corporate services in Malaysia, including expert accounting solutions tailored for businesses of all sizes.

From bookkeeping to business advisory, our MIA & CTIM-certified accountants ensure that your financials are accurate, compliant, and optimised for growth.

Need a reliable corporate service provider in Malaysia? Contact GROF today to handle your accounting, payroll, and business compliance needs.